Union Budget 2022: Government aims to take Digital Banking to the last-mile: PayPoint India

1 Feb 2022 , 07:55 PM

While digital banking and fintech innovations have grown rapidly in the recent past, the Government is continuously encouraging this segment to ensure that the benefits of digital banking remotest corner of the country.

Presenting the budget for the financial year 2022-23, the finance minister mentioned that the Government’s aim for this year would be to expand the scope of digital banking further and take it to every citizen and make it more inclusive. Taking forward this agenda, 75 digital banking units are expected to be launched in 75 districts to incentivize digital payments adoption and bolster the payments infrastructure further. The thrust on the digital ecosystem and the technology adoption in rural areas would immensely benefit from the move.

Further enabling financial inclusion is the move to connect 150,000 post offices in India to the core banking system, allowing people, especially in rural areas, to access their accounts online and transfer money within post office accounts and other banks.

Additionally, the launch of Digital Rupee is a move that comes at a suitable time. It would create a seamless and cost-effective payment system and eliminate the spread and use of unregulated digital currencies. We expect the virtual currency to positively stimulate the economy and help promote further innovations in the digital and blockchain technology ecosystem.

The author of this article is  Ketan Doshi, Managing Director of PayPoint India

The views and opinions expressed are not of IIFL Securities, indiainfoline.com